Gold fails to cross $1,300 mark at close
Precious metals ended higher once again on Monday, 27 September
2010 at Comex. Yellow metal prices struck new record for the seventh
consecutive session. Silver also shone. Prices rose as dollar dropped.
Generally, a stronger dollar pressures demand for
dollar-denominated commodities, such as crude oil and gold, which become
more expensive for holders of other currencies and also vice versa. But
bullion metals have registered increase in prices despite strong dollar
in recent times and vice versa.
On Monday, gold for December delivery ended at $1,298.6 an
ounce, higher by $0.50 (0.03%) on the New York Mercantile Exchange.
Prices closed a little shy of $1,300 level for the fourth consecutive
day. During intra day trading,
prices reached a high of $1301.3. This was by far an all time highest
finish for the yellow metal. Last week, gold ended higher by 1.6%. It
was the sixth weekly gains for gold in past six weeks.
Gold ended the month of August 2010 higher by 5.6% after ending
July lower by 5%. It was the worst monthly loss for gold since December
2009. For the second quarter, gold ended up by 12%, its seventh
consecutive quarterly gain. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 18%.
On Monday, December Comex silver futures ended higher by 7 cents (0.3%) at $21.47. It was once again an all time high
close for silver prices in three decades. Last week, silver ended
higher by 2.7%. For the month of August, silver ended higher by 8%. In
July 2010, silver shed 3.7%. For the second quarter, silver ended higher
by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 22%.
In the currency market on Monday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies closed lower.
Gold had ended FY 2009 higher by 24%. Silver futures had ended
2009 up 50%. The dollar index had lost 4.2% against its counterparts
last year.
Last year, after hitting a low at $807.30 per ounce on 15
January 2009, gold futures rallied almost 51% to hit an all-time high at
$1217.40 per ounce during early December of 2009 but fell from those
levels at the end. Silver futures had hit a low at $10.42 on 15 January
2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold,
silver also ended lower than its all time high level.
At the MCX, gold prices
for December delivery closed lower by Rs 65 (0.35%) at Rs 19,213 per ten
grams. Prices rose to a high of Rs 19,269 per 10 grams and fell to a
low of Rs 19,202 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 88
(0.3%) lower at Rs 32,660/Kg. Prices opened at Rs 32,759/kg and fell to a
low of Rs 32,579/Kg during the day's trading.
